Reliance Jio's free service might get extended until June 30, but the company might charge a token fee. Offering a nominal price for data - lower than what it had announced in September - with voice over LTE free may prevent a sharp drop in customers, and the operator can still start its payment cycles, said, analysts.
The company announced its 4G VoLTE services for consumers on September 1 and offered free access to data and voice calls till December 31. The company then announced 'Happy New Year Offer,' which extended the offer till March 31, 2017. Reliance Jio has added over 72 million subscribers since the service began.
The operator has been criticised by users for inconsistent data speeds and calls not getting through. On December 1, it announced plans to decongest its network to improve data speeds for its users and blamed other operators for not providing sufficient interconnect points for calling.
"We expect many will go back to using their primary number if the (free) offer is withdrawn, and Jio could well lose over half its subscribers if it starts charging more without fixing the call drop problem," said Chris Lane, a senior analyst at US brokerage, Bernstein.
Reliance Jio's free service has been heavily criticised by telecom operators in the past. Airtel recently filed a petition with the Telecom Disputes Settlement Appellate Tribunal (TDSAT) against TRAI for allowing Reliance Jio's promo offers.
Source: Economic Times
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